SM Entertainment’s Co-CEO Lee Sung Soo Releases Damning Video Detailing Lee Soo Man’s Alleged Mismanagement And Greed
One of SM Entertainment’s Co-CEOs, Lee Sung Soo, released a Youtube video in which he made several damning claims about Lee Soo Man.
On February 16, Lee Sung Soo released a video titled “SM Entertainment CEO Lee Sung Soo’s Statement Presentation Part 1.” In the video, Lee Sung Soo appears in public and addresses the current state of SM Entertainment.
Hello, this is SM Entertainment’s CEO, Lee Sung Soo. Recently the media has been full of news of Lee Soo Man’s stock being acquired…
— Lee Sung Soo
On this day, Lee Sung Soo made several damning allegations against Lee Soo Man. Lee Sung Soo alleged that Lee Soo Man had ordered executives and employees close to him to do the following in order for the founder to maintain his grip on the company:
- Make executives on the board campaign Lee Soo Man’s importance to SM Entertainment and outwardly express that they need Lee Soo Man.
- Have SM Entertainment sign a consulting deal with Lee Soo Man to give legitimacy to his actions.
- Have all of SM Entertainment’s artists sign a contract with Lee Soo Man’s separate business entity (CTP) for all of their overseas promotions.
- Or have SM Entertainment sign a second production contract with Lee Soo Man in Korea.
- To find a way for SM Entertainment to have a lower revenue in the first quarter to prove that the company isn’t as profitable without Lee Soo Man.
- To push back albums slated for February and March to be released in April.
Lee Sung Soo also revealed that Lee Soo Man ordered the creation of a shareholder’s response team to find a way for Lee Soo Man to come back to the company.
The shareholder response team’s focus was to find a way for Lee Soo Man to return to the company, and the ’emergency response’ meetings led by Lee Soo Man continued on while being meaningless. SM Entertainment’s current executive team, including myself, became exhausted from resisting.
— Lee Sung Soo
Lee Sung Soo then detailed Lee Soo Man’s contract with SM Entertainment that would pay him for the next 70 years.
Even after he stops producing, SM would need to pay Lee Soo Man 6% of revenue sales from artists’ albums for the next 70 years, as well as 3% of management revenue for three years from 2023. That’s approximately ₩80.0 billion KRW (about $62.3 million USD). I was so ashamed to meet SM’s employees, artists, and all of our investors.
— Lee Sung Soo
Lee Sung Soo also stated how peculiar changes on the executive board were made, which he alleges were done so at Lee Soo Man’s behest.
Something strange occurred when an outside director abstained from his position during the board’s resolution, which should have been the first step in improving governance.
— Lee Sung Soo
Lee Sung Soo also claimed that Lee Soo Man had made aespa cry while preparing for a comeback.
Lastly, Lee Sung Soo brings up a question in regard to Lee Soo Man’s deal with HYBE.
(In the contract with HYBE), Lee Soo Man’s role as a producer domestically is limited to three years, but there are no limits to his role as a producer overseas. Why did you make a clause for overseas production at all in a stock acquisition contract? Did HYBE agree, knowing the possibility that Lee Soo Man’s foreign business(CTP) might be illegal? Or did they sign the contract without knowing?
Watch the video in its entirety in the link below.
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